USD/CAD Mid-Day Outlook

Daily Pivots: (S1) 1.0065; (P) 1.0124; (R1) 1.0182; More.

USD/CAD continues to stay inside range of 1.0059 and 1.0214 today, without making any progress. The corrective look of the rise from 0.9987 to 1.0214 argues that consolidation from 1.0326 is still in progress. below 1.0059 is needed to revive the case that fall from 1.0326 is still in force to below 0.9987 before completion. On the upside, though, above 1.0214 will add more credence to the case that such consolidation has finished and will encourage rally to 1.0326 resistance and then 1.0378 resistance.

In the bigger picture, the corrective nature of the fall from 1.0378 indicates that it's merely a correction, or part of consolidation, to whole rise from 0.9056. Failure below 1.0378 resistance suggests that such medium term rebound is not ready to resume yet. More choppy sideway trading could now be seen between 0.9709 and 1.0378. But still, further rally is in favor as long as 0.9709 support holds. Above 1.0378 will confirm whole rise from 0.9056 has resumed to 61.8% projection of 0.9056 to 1.0378 from 0.9709 at 1.0526 or higher. Though break of 0.9709 will indicate that the correction from 0.9056 could have completed and short term bias will then be turned back to the downside for retesting this low.

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